Company announcement no 19/2021 Interim Report Q3 2021
Interim Report Q3 2021
EBITDA fixed herd prices (FHP) for Q3 2021 increased to 7,536 mEUR (Q3 2020: 7,253 kEUR), corresponding to an EBITDA margin FHP of 28.3% (Q3 2020: 29.3%). The quarterly EBITDA in Q3 2021 increased by 283 kEUR (compared to Q3 2020). Q3 harvest influenced EBITDA margin significantly, as it is EBITDA without revenue. Harvest EBITDA was Q3 2021 4.6 mEUR and Q3 2020 3.8 mEUR, EBITDA margin FHP (without harvest) was 10.9% (Q3 2019: 14.1%).
ASF outbreak in Ostrov impacted Q3 result negative with 518 kEUR being feed inventories in Feed Kitchen that needed to be scrapped (due to instructions from Authorities), which are not covered by insurance policy. Idavang expects that when Q4 report is released a full plan of when production will be established again.
Sales prices in Q3 were 1.18 EUR/kg live weight, up from 1.12 EUR/kg (Q3 2020). The price increase has been driven by better supply/demand relation in Russia.
The outlook is negative in EU/Lithuania as demand from China has decreased significantly, whereas Russia the demand is better than in 2020.
Feed prices in Q3 2021 were 255 EUR/T (compared to 230 EUR/T Q3 2020). A significant amount of grain is hedged until harvest 2022 either in storage, on fields, or contracts, reducing future increases in feed price, as raw materials as grain have been increasing. End September 2021 4.0 mEUR hedging gains are included in Group equity in other reserves.
The herd valuation in Q3 decreased by 4,899 kEUR (compared to 30.06.2021). The decrease is driven on price pressure in EU due to over production of pork, as the export from EU to China currently is on a minimum, due to low prices in China.
Free cash flow was 2,637 kEUR in Q3 2021 (Q3 2020: 3.771 kEUR).
Net interest-bearing debt has decreased from 87,3 mEUR (31.12.2020) to 82,7 mEUR driven by cash flow from operating activities
Bondholders – Claus Baltsersen, CEO phone +370 (685) 34 104
Media – Jytte Rosenmaj, Board Member phone +45 26 73 46 99